General Insurance PrinciplesQuestion 201 of 315
On a life insurance policy, the person who has the contractual right to name the beneficiary, take a loan, or surrender the policy is the:
a.Insured
b.Beneficiary
c.Agent of record
d.Policy owner
Explanation
The policy owner holds all contractual rights, including naming or changing the beneficiary, taking policy loans, and surrendering for cash value. The insured is the life covered; the beneficiary receives proceeds at the insured's death; the agent of record receives renewal commissions but holds no contractual rights.
Practice all 315 questions free — no signup required.
Related questions on this topic
- Which statement BEST distinguishes a stock insurer from a mutual insurer?
- An insurer that has been issued a Certificate of Authority by the California Department of Insurance is classified as:
- An insurance company purchases coverage from another insurance company to spread risk on very large policies. This arrangement is called:
- An applicant submits a completed application with the initial premium. The insurer issues a policy with a different premium class than requested. Under contract law, this is BEST described as:
- Under California Insurance Code §10110.1, insurable interest in another's life is generally found in all of the following relationships EXCEPT:
- Insurance contracts are described as contracts of 'utmost good faith' (uberrimae fidei) PRIMARILY because:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California Life & Health Insurance License Exam · How we review